West Africa approves establishment of $1b agency to drive investments

ECOWAS Ministers have approved the establishment of a regional investment guarantee agency with an authorized capital of $1 billion, the West African bloc has announced.

The agency, according to officials, will help mitigate political risks associated with investments in West Africa.

“Specifically, the agency will provide political risk insurance, export trade guarantee services and Re-insurance services to local insurance companies,” ECOWAS said in a statement December 22, 2013.

It added the establishment of the agency would also help insulate Foreign Direct Investors from associated risks thereby encouraging investments in large and complex high impact sectors.

Set up in partnership with the African Trade Insurance (ATI), ECOWAS said the agency is part of a programme by the Commission to make the region more attractive as an investment destination.

By Ekow Quandzie